Payday loans can be a viable solution to certain financial situations. Sometimes, they can provide just the help you need. If you have been wondering if you need a payday loan, there is no need to be upset about it. Read the advice in this article to see how payday loans can give you the assistance that you need.
Payday lenders know their way around usury laws. Instead of interest, payday lenders charge fees. The typical annual percentage rate (APR) on a payday loan is hundreds of percent, which is 10-50 times the standard APR for a personal loan.
Do everything you can to pay the loan by the due date. Pushing the loan time out further with refinancing can cost you high interest rates that can quickly bury you further in debt.
You must always investigate alternatives prior to accepting a payday loan. Almost any source of credit (family loan, credit card, bank loan) is better than a payday loan. Such options offer lower interest and fees than payday loans.
If you must get a loan, shop around before making a decision. Even if you feel your situation is an emergency, never jump into the first loan you find. If you look for several different companies you can find the best deal on interest. This can save you a lot of time later so that you don’t have to spend your money on tons of interest.
Make sure you know the consequences of paying late. Sometimes, there may be unforeseen circumstances that change whether you can pay back a loan. The fine print will give you an idea of the late fees that you will incur. Late fees can be very high for payday loans, so make sure you understand all fees before signing your contract.
If your repayment date is coming up and you will not have enough to cover it, call the company as soon as possible to ask if they will give you an extension. You might find your payday loan company is willing to offer you a one or two day extension. If you get an extension, you may incur more fees.
Make sure that you have a work history that will qualify you for a payday loan before you apply. A lot of payday lenders desire to see at 3 months of having a stable income prior to granting their loans. Most companies want proof of employment, like pay stubs.
Live and learn. When you have successfully paid off you loan, you might be mad that you spent so much. Instead of being angry and doing nothing, let this motivate you to save a small portion of your paycheck every week so you won’t ever have to take out a payday loan again.
You should now feel more comfortable about payday loans. Many people do not consider all the facts before applying for a payday loan and end up being turned down as a result. Ideally, these suggestions have helped you to understand the best choice for you.